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February 2, 2022
Question

If an employer included a student loan repayment as income on w2 can i exclude it, as Exclusion for employer payments of student loans was in CARES act?

  • February 2, 2022
  • 1 reply
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employer gave $2000 in student loan repayment payed to me i payed student loan with it.  I found on irs web site "Exclusion for employer payments of student loans. Employer-provided educational assistance benefits include payments made after March 27, 2020, and before January 1, 2026, whether paid to the employee or to a lender, of principal or interest on any qualified education loan incurred by the employee for education of the employee."  The 2000 was included in wages on my W2 so im tryinf to find out how to exclude

1 reply

Hal_Al
Employee
February 2, 2022

No.  Your employer was supposed to do that.  Go back to them and ask for a corrected W-2.

 

There is no provision for you to claim that exclusion on your tax return. 

 

Reference: https://thecollegeinvestor.com/33583/employer-student-loan-assistance-tax-free/#:~:text=Section%202206%20of%20the%20CARES,both%20the%20employee%20and%20employer.

Which says, in part, "If you want to take advantage of this program, your employer needs a Section 127 program created"